Iraq achieved a major international legal victory after winning a $49 million lawsuit in Paris, the Ministry of Justice announced. The ruling prevents the Iraqi government from paying the substantial compensation demanded by a foreign company.
According to the Ministry, the lawsuit was filed before the Judicial Court of Paris by Gulf Falcon Company, which sought arbitration and financial compensation from Iraq. The company had previously signed two contracts with the Iraqi government in 2000 to manage and operate the country’s air transport sector. However, after 2003, exceptional political and security circumstances led to the termination of those contracts.
Haitham Muhyi Radhi, Director General of the Ministry’s Legal Department, explained that Gulf Falcon later attempted to pursue international arbitration, demanding $49 million in compensation. Iraq’s legal team presented a strong defense, successfully refuting all claims made by the company.
Radhi emphasized that this victory demonstrates the capability and professionalism of Iraq’s legal experts in protecting national interests and defending the state in international courts. He added that the decision marks the end of a dispute that began in 2023, highlighting the Ministry’s dedication to ensuring that Iraq does not bear unjust financial burdens resulting from outdated or invalid contracts.
This Iraq achieved lawsuit win not only saves Iraq millions of dollars but also boosts confidence in its ability to navigate complex international arbitration cases. The Ministry of Justice reiterated its ongoing commitment to defending Iraq’s rights and strengthening its legal standing in global institutions.
Analysts view the ruling as a positive signal for Iraq’s international reputation, especially as the country continues to attract foreign investment and rebuild state institutions. By avoiding this $49 million liability, Iraq reinforces its position as a sovereign state capable of upholding fair legal processes and protecting its financial resources.